Bitcoin (BTC) Undergoes Major Selloff, Marking Its Biggest Drop Since the Start of 2025

Bitcoin faced a substantial selloff, marking its biggest drop since the beginning of 2025. The flagship cryptocurrency experienced a decline of over 5%, bringing its price to $42,000 at the time of writing.

This selloff follows a period of relative calm in the crypto market, with Bitcoin largely trading within a narrow range over the past few weeks. However, the recent sell-off seems to have been triggered by a combination of factors, including a broader sell-off in the stock market and the upcoming presidential inauguration.

As Bitcoin faced a selloff, large buyers are reportedly stepping in to capitalize on the dip. According to data from on-chain analytics firm CryptoQuant,鲸鱼地址继续增持比特币，以应对即将到来的总统就职典礼。

The metric, which tracks the total number of times an address has received 1,000 BTC or more, surged to its highest level since March 2022. This indicates that a small number of addresses, likely belonging to exchanges or institutions, are accumulating large amounts of Bitcoin.

While the crypto market faced a downturn, several altcoins were being sold off at discounted prices, presenting potential ‘buy the dip' opportunities for traders.

Cardano (ADA) Struggles Below $1

ADA declined more than 12% in the last 24 hours and at the time of writing, it was trading below the $1 level. Despite the drop, ADA remained above its key support level.

As long as the low formed at 96.4 cents holds, ADA could still follow the bullish scenario. However, a deeper pullback could occur, with key support levels between 85.8 and 93 cents. Resistance levels are between $1.10 and $1.20, with additional levels at $1.50 and $1.70 to watch.

Chainlink (LINK) Fights for Support

LINK was currently holding above its support area, with no changes to the overall market structure. The altcoin was down by more than 7%, trading around $20 levels.

If the decline continues, it could dip below its monthly low of $19.72 offering a compelling ‘buy the dip’ scenario for traders.

Bittensor (TAO) Faces Volatility

TAO took a hit, dropping more than 15%, and settling at around $460. Negative market sentiment and heightened volatility—measured at 10.49%—were driving the downward pressure.

The first key resistance level for TAO is at $474.24, and it needs to close above this level to continue moving higher. On the downside, the bottom support is located at $407, which is a critical level for any reversal or further declines.

Celestia (TIA) Presents Discounted Buy Opportunity

TIA was trading at $4.59 but faced pressure due to an increase in token supply, which impacted its value negatively.

Its support level is at $4.50, and it needs to stay above this to have a chance to rise toward $5, 5.50 and $6. If it fails to break above $5.5 or drops below $4.5, the price could decline further, making it a discounted buy.

SUI (SUI) Holds Strong at $4.60

SUI was trading steadily at a crucial price point of $4.60. The token’s chart indicated potential growth in 2025, supported by a rising trendline that acted as a critical level for maintaining price stability.